Morning Commentary: Preferreds ticking up amid limited liquidity; RAIT notes hold their ground

By Stephanie N. Rotondo

Phoenix, Aug. 18 – It was quiet in the preferred stock market as Monday’s session got underway, a trader reported.

“The long bond is off,” he noted, adding that the dip wasn’t really news driven given that it was a muted weekend, aside from ongoing rioting near St. Louis.

The Wells Fargo Hybrid and Preferred Securities index was up 19 basis points at mid-morning.

The trader said he had not heard of any news deals for the week, though he remarked that there were “a lot of filings last week.” As such, that could mean the primary will continue to churn out smaller, unrated deals as it did in the previous week.

From last week’s business, RAIT Financial Trust’s $70 million of 7.125% $25-par notes due 2019 were holding around $24.75.

The deal came Aug. 11 and has yet to receive a temporary reporting symbol, the trader said.

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